Bearish Nvidia Option Trade Nets $6 Million in Day on Share Drop
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A trader who bet against Nvidia Corp. in the options market Tuesday appears to have made more than $6.5 million as shares of the AI darling slumped.
Early Tuesday, 60,000 contracts of a $119/$115 put spread were bought for a total cost of about $1.23 million. The buyer was betting on shares dropping below $119 by Friday, while lowering their cost — and capping potential gains on a selloff — by selling the lower-strike option. For the trade to expire “in the money” — that is, worth something — shares would need to dip almost 6% from Tuesday’s close.